TICKY FULLERTON, PRESENTER: A cash-strapped Qantas International says its new partnership with Emirates is a return ticket to profitability.

The deal replaces Singapore with Dubai as the overseas hub for Qantas and spells the end of a 17-year agreement with British Airways.

And tourist groups have given it the thumbs up, saying it helps to put Australia back on the map.

Andrew Robertson reports.

ANDREW ROBERTSON, REPORTER: Two weeks ago, Alan Joyce was announcing Qantas' first loss since its share market float in 1995. Now the strategy for earnings to take off again.

ALAN JOYCE, CEO, QANTAS: We believe that this clearly shows there is a path to getting Qantas International more profitable and it's a big, big step in producing a profit for Qantas International.

ANDREW ROBERTSON: Qantas is joining forces with Emirates in a 10-year alliance which will see the Kangaroo route to London touch down in Dubai rather than Singapore to link up with Emirates' global network.

Corporate advisor Nigel Lake wonders if Dubai may eventually be the end of the line for Qantas.

NIGEL LAKE, JOINT CEO, POTTINGER: I think there is a big opportunity to play a much stronger role within this region and to devote less capacity on the long-haul routes through into Europe, which of course have become extremely competitive.

ANDREW ROBERTSON: And while Alan Joyce maintains Qantas will continue to fly to London for now, he's also aware of the need for that bigger presence in Asia.

ALAN JOYCE: Qantas will increase dedicated capacity to Singapore and re-time flights to Singapore and to Hong Kong to enable more same-day connections across Asia.

ANDREW ROBERTSON: Which is a strategy which Pottinger's Nigel Lake believes will miss a big opportunity for Qantas.

NIGEL LAKE: Many of the major capital cities in Asia still have relatively few services direct from Brisbane or Sydney or Melbourne and in the business community the ability to get direct convenient access to more than just the very main cities I think is quite important.

ANDREW ROBERTSON: As Qantas joins forces with Emirates, it's severing its longstanding code share arrangement with British Airways. Alan Joyce says Qantas and BA remain on good terms, but Emirates president Tim Clark believes code-sharing alliances are an anachronism and he thinks other airlines eventually will come to the same conclusion.

TIM CLARK, PRESIDENT, EMIRATES AIRLINE: I think the 21st Century is going to see a realignment, a realignment as a result of differing traffic flows, different market segmentation, new markets and new segments within the existing markets and those new markets.

ANDREW ROBERTSON: While Qantas is hoping its alliance with Emirates will turn its fortunes around, the tourism industry is also hoping for big things. With one-stop flights from 70 cities in Europe, North Africa and the Middle East available from next year, tourism operators are getting ready for an influx of visitors keen to see the sights Australia has to offer.

The Tourism and Transport Forum's John Lee says the Qantas-Emirates alliance will add capacity, which is known in the tourism industry as a widening of the pipe.

JOHN LEE, CEO, TOURISM & TRANSPORT FORUM: Any deal, any relationship or partnership that sees a strengthening of the pipe or a widening of the pipe will ultimately mean that we have more people staying at resorts or visiting the wilderness areas of Australia, and that's a very positive sign for the tourism industry.

ANDREW ROBERTSON: It was also a very positive sign for the Qantas share price, which rose 7 per cent as investors gave the Emirates alliance a big tick.